TORONTO, July 10, 2012 /CNW/ - St Andrew Goldfields Ltd. (TSX-SAS) (OTCQX-STADF), ("SAS" or the "Company") reports second quarter ("Q2 2012") production
of 23,016 ounces of gold from its Holt, Holloway and Hislop mines in
the Timmins mining district, north-eastern Ontario, Canada.
"We are pleased to report another record quarter of production at SAS,
on our way to achieving our annual production target," said Jacques
Perron, President and CEO of SAS. "Production increased steadily from
the first quarter and was in line with our expectations. As underground
development progresses at Holt and Holloway, we will open new mining
areas that will provide us with the ability to continue to increase our
consolidated gold production."
Q2 2012 Production Results
Q2 2012 production
2012 Year-to-date Production
Holt Mine ("Holt")
Holt produced 11,193 ounces of gold derived largely from Zone 4 from the
925m Level and the 1075m Level mining areas as well as the C-104
remnant mining area. Total development for Q2 2012 reached nearly 400
metres per month, which was a 16% increase over the previous quarter in
total lateral development driven. The head grade mined during Q2 2012
was slightly above the Company's expectation and recovery was at the
planned level of 94.2%.
Holloway Mine ("Holloway")
Holloway produced 5,923 ounces of gold from the Smoke Deep Zone. The
recovery rate of 91.2% exceeded the Company's forecast. Development
crews continue to advance the footwall ramp and sublevel development.
All required infrastructure for the mining of this zone is now
established other than the ongoing reserve development.
Hislop Mine ("Hislop")
Hislop produced 5,899 ounces of gold in Q2 2012. The head grade averaged
2.21 g/t Au, which was substantially higher than the Company's
expectations. Mining is progressing as planned and is completed to the
final pit perimeter in all areas. Recovery for Hislop during Q2 2012
averaged 85.6%, slightly below expectations.
Q2 2012 Earnings Call
SAS is scheduled to release its Q2 2012 results on Friday, August 10,
2012, after market close. A conference call and webcast is scheduled
for the morning of Monday August 13, 2012. For further information,
please see the Company's website at www.sasgoldmines.com.
Production at the Holt, Holloway and Hislop mines, processing at the
Holt Mill, and mine development and production activities at the
operations are being conducted under the supervision of Duncan
Middlemiss, P.Eng, the Company's COO and Vice President of Operations.
Mr. Middlemiss is a qualified person as defined by NI 43-101, and has
reviewed and approved this news release.
SAS (operating as "SAS Goldmines"), is a gold mining and exploration
company with an extensive land package in the Timmins mining district,
north-eastern Ontario, which lies within the Abitibi greenstone belt,
the most important host of historical gold production in Canada. SAS is
focussed on developing its assets in the Timmins Camp, with three
producing mines and aggressive exploration activities across 120km of
land straddling the Porcupine-Destor Fault Zone.
This news release contains forward-looking information and
forward-looking statements (collectively, "forward-looking
information") under applicable securities laws, concerning the
Company's business, operations, financial performance, condition and
prospects, as well as management's objectives, strategies, beliefs and
intentions. Forward-looking information is frequently identified by
such words as "may", "will", "plan", "expect", "estimate",
"anticipate", "believe", "intend" and similar words referring to future
events and results, including in respect of achieving the Company's
gold production levels in 2012; the improvement in throughput at the
Holt Mine, and the opening of new mining areas at the Holloway Mine,
and the effect thereof..
This forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause actual results to differ
materially from those expressed or implied by the forward-looking
information. Factors that may cause actual results to vary materially
include, but are not limited to, unanticipated operational or technical
difficulties which could escalate operating and/or capital costs and
reduce anticipated production levels; uncertainties relating to the
interpretation of the geology, continuity, grade and size estimates of
the mineral reserves and resources; the Company's dependence on key
employees and changes in the availability of qualified personnel;
fluctuations in gold prices and exchange rates; operational hazards and
risks, including the inability to insure against all risks; changes in
laws and regulations; and changes in general economic conditions. Such
forward looking information is based on a number of assumptions,
including in respect of the ability to achieve operating cost
estimates, the level and volatility of the price of gold, the accuracy
of reserve and resource estimates and the assumptions on which such
estimates are based and general business and economic conditions.
Should one or more risks and uncertainties materialize or should any
assumptions prove incorrect, then actual results could vary materially
from those expressed or implied in the forward-looking information.
Accordingly, readers are cautioned not to place undue reliance on this
forward-looking information. SAS does not assume the obligation to
revise or update this forward-looking information after the date of
this release or to revise such information to reflect the occurrence of
future unanticipated events, except as may be required under applicable
securities laws. A further description of the risks and uncertainties
facing the Company may also be found in the Company's Annual
Information Form available on SEDAR at www.sedar.com.
SOURCE St Andrew Goldfields Ltd.
For further information:
Tel: 1-800-463-5139 or (416) 815-9855; Fax: (416) 815-9437; Website: www.sasgoldmines.com
Suzette N Ramcharan
Manager, Investor Relations
President & CEO
CFO, VP Finance & Administration